Concept explainers
(a)
To calculate: The accumulated value of a plan that contributes
(b)
The interpretation of
(c)
The interpretation of
(d)
To calculate: The value of
Interpret the result.
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MATHMATICAL APPLICATIONS FOR THE MANAGEM
- The annual percentage yield (APY) of an investmentaccount is a representation ofthe actual interest rateearned on a compounding account. It is based on acompounding period of one year. Show that the APYof an account that compounds monthly can be foundwith the formula APY=(1+r12)121.arrow_forwardCompound Interest In Exercises 13 and 14, determine the principal P that must be invested at rate r, compounded monthly, so that $500,000 will be available for retirement in t years. r=312,t=15arrow_forwardShow workarrow_forward
- Complete the table for the time t (in years) necessary for P dollars to triple when it is invested at an interest rate r compounded continuously and annually. decimal places.) (a) continuously ir 2% 4% 6% 8% 10% 12% (b) annually 2% 4% 6% 8% 10% 12% Need Help? Read Itarrow_forwardWalmart annual/quarterly revenue history and growth rate from 2010 to 2022. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. Walmart revenue for the quarter ending July 31, 2022 was $152.859B, a 8.37% increase year-over-year. Walmart revenue for the twelve months ending July 31, 2022 was $587.824B, a 3.83% increase year-over-year. Walmart annual revenue for 2022 was $572.754B, a 2.43% increase from 2021. Walmart annual revenue for 2021 was $559.151B, a 6.72% increase from 2020. Walmart annual revenue for 2020 was $523.964B, a 1.86% increase from 2019. 1. Use the model found above to answer this question. What is the slope m? Round to the nearest tenth (1 decimal place). 2. Use the model found above to answer this question. What is the intercept b? Round to the nearest…arrow_forwardPH [¹-(₁ + )¯] nt r 1+- n pay off the balance over three years. If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay? Use PMT= to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of $4800 and an annual interest rate of 13%. You decide to a. The monthly payments are approximately $ (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The total interest paid over 3 years is approximately $. (Round to the nearest dollar as needed.)arrow_forward
- In compound interest, time is divided into interest periods. During each period, interest is earned at a certain rate per interest period. For example, if you borrow $1,000 and the interest rate is 2% per quarter, the interest accumulated after one quarter would be $1,000(0.02)=$10, and the total amount of money you would owe back after one quarter would be found by $1,000(1.02)'; after three quarters, $1, 000(1.02)³; and in general, after n quarters $1,000(1.02)". In the geometric sequence described above, what are a1 and r? (Where r is representing the common ratio, not interest rate.) Aj = r =arrow_forwardLondon owes $7, 000 on her credit card. The bank charges an annual interest rate of 16.8%, compounded monthly. If London wants to pay off her credit card using equal monthly payments over the next 18 months, what would the monthly payment be, to the nearest dollar? Pr M 1- (1+r)-" M = the monthly payment P = the amount owed r = the interest rate per month n = the number of paymentsarrow_forward
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